NEW YORK, Oct. 30, 2023 /PRNewswire/ -- Unique Logistics International, Inc. (OTCMKTS: UNQL) ("Unique" or the "Company"), a global logistics and freight forwarding company, today announced results for its first fiscal quarter ended August 31, 2023.

"Market slowdown in the current quarter was anticipated, and the impact is being felt throughout the industry," said Sunandan Ray, Chief Executive Officer of Unique Logistics. "United States import shipping remained depressed for most of the quarter, and only in mid-August were there signs of an uptick in volumes. The Company remains focused on expanding its customer base, diversifying its product offerings, and building business at our recently acquired subsidiaries. The Company has also embarked on a plan to reduce fixed costs, the impact of which should be felt in our third quarter commencing December 1, 2023."

First Quarter Key Metrics
The quarter ended August 31, 2023, saw a substantial decline in the shipping market. The combined impact is reflected in the decline in the Company's revenue as compared with the same quarter last year. The impact of reduced shipping was particularly severe on the more expensive air freight sector.

First Quarter Financial Results

• Gross profit margins improved to 13.1% compared with 7.4% for the same period last year.
• Newly acquired operating subsidiaries in Asia resulted in increased operating cost, while the business levels at these subsidiaries remained depressed due to the reduced shipping volumes in the quarter.
• Overall EBITDA loss of $0.7 million is partially due to low shipping volumes and partially due to fixed costs that the Company incurred in order to support anticipated growth and market rebound, including costs of integration of the consolidated subsidiaries since the acquisition.

"We continue our progress towards the planned merger with Edify Acquisition Corporation (NASDAQ: EAC), a strategic move that will establish us as a Nasdaq-listed entity with the necessary liquidity to execute our growth strategy both organically and through acquisitions."

"The first quarter saw a temporary slowdown in shipping activity. Despite these challenges, we held EBITDA close to breaking even, and we continue to sustain robust growth initiatives even in the face of a challenging economic landscape."

Business Outlook

"We are actively integrating recently acquired subsidiaries while exploring new opportunities for acquisitions and partnerships. We are also dedicated to acquiring new customers and strategically positioning the company for increased volume, a broader customer base, reduced fixed costs, and anticipated improved performance in the upcoming quarters."

Mr. Ray concluded, "Unique Logistics remains dedicated to pushing the boundaries of innovation, sustainability, and customer-centric solutions. By harnessing our collective expertise and forward-looking approach, we are confident in our ability to weather challenges and emerge stronger and more dynamic in the future."

About Unique Logistics International, Inc.

Unique Logistics International, Inc. (OTC Markets: UNQL) through its wholly owned operating subsidiaries, is a global logistics and freight forwarding company providing a range of international logistics services that enable its customers to outsource to the Company sections of their supply chain process. The services provided are seamlessly managed by its network of trained employees and integrated information systems. We enable our customers to share data regarding their international vendors and purchase orders with us, execute the flow of goods and information under their operating instructions, provide visibility to the flow of goods from factory to distribution center or store and when required, update their inventory records.

For more information on UNQL and its businesses, please visit www.unique-usa.com.

About Non-GAAP Financial Measures (Adjusted EBITDA)

We define adjusted EBITDA to be earnings before interest, taxes, depreciation and amortization and other non-recurring income or expenses.

Adjusted EBITDA is not a measurement of financial performance under GAAP and may not be comparable to other similarly titled measures of other companies. We present adjusted EBITDA because we believe that adjusted EBITDA is a useful supplement to net income as an indicator of operating performance. For this reason, we believe adjusted EBITDA will also be useful to others, including our stockholders, as a valuable financial metric.

Adjusted EBITDA should not be considered as an alternative to net income as an indicator of performance or as an alternative to cash flows from operating activities as an indicator of cash flows, in each case as determined in accordance with GAAP, or as a measure of liquidity. In addition, adjusted EBITDA does not take into account changes in certain assets and liabilities as well as interest and income taxes that can affect cash flows. We do not intend the presentation of these non-GAAP measures to be considered in isolation or as a substitute for results prepared in accordance with GAAP. These non-GAAP measures should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP.

Cautionary Note Regarding Forward-Looking Statements

This press release includes express or implied statements that are not historical facts and are considered forward-looking within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Forward-looking statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance and may contain projections of our future results of operations or of our financial information or state other forward-looking information. In some cases, you can identify forward-looking statements by the following words: "may," "will," "could," "would," "should," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "project," "potential," "continue," "ongoing," or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words.

Although we believe that the expectations reflected in these forward-looking statements such as the growth in revenues, along with the statements under the heading Business Outlook are reasonable, these statements relate to future events or our future operational or financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Furthermore, actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors that are beyond our control, including, without limitation, statements about our future financial performance, including our revenue, cash flows, costs of revenue and operating expenses; our anticipated growth; our predictions about our industry; the impact of the COVID-19 pandemic on our business and our ability to attract, retain and cross-sell to clients. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission ("SEC"), including in our Annual Report on Form 10-K for the fiscal year ended May 31, 2023. The forward-looking statements in this press release speak only as of the date on which the statements are made. We undertake no obligation to update, and expressly disclaim the obligation to update, any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

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SOURCE Unique Logistics International, Inc.